Record Retention For Business For any business, good recordkeeping is essential for tax reporting purposes. Beyond that however, the success of the company relies on good record keeping. The guidelines below give retention periods for the most common business records. Please call us at (407) 228-0560 for more information or for assistance with your business record retention program. You may also email us at consultants@lfharris.com. Accounting Records Retention Period Accounts Payable Seven Years Accounts Receivable Seven Years Audit Reports Permanent Chart of Accounts Permanent Depreciation Schedules Permanent Expense Records Seven Years Financial Statements (annual) Permanent Fixed Asset Purchases Permanent General Ledger Permanent Inventory Records Seven Years Permanent for LIFO system Loan Payment Schedules Seven Years Purchase Orders (1 copy) Seven Years Sales Records Seven Years Tax Returns Permanent Bank Records Retention Period Bank Reconciliations Two years Cancelled Checks Seven Years* Electronic Payment Records Seven Years Corporate Records Retention Period Board Minutes Permanent Bylaws Permanent Business Licenses Permanent Contracts - Major Permanent Contracts - Minor Contract Life + four years Insurance Policies Life of Policy + 3 years.** Leases / Mortgages Permanent Patents / Trademarks Permanent Shareholder Records Permanent Stock Registers Permanent Stock Transactions Permanent Employee Records Retention Period Benefit Plans Permanent Employee Files (Ex-employees) Seven Years*** Employment Applications Three Years Payroll Records Seven Years Pension / Profit Sharing Plans Permanent Real Property Records Retention Period Construction Records Permanent Leasehold Improvements Permanent Lease Payment Records Life of Lease Plus Four Years Real Estate Purchases Permanent * Permanent for real estate purchases. ** Check with your agent. Liability for prior years can vary. *** Or statute of limitations for employee lawsuits.

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